Bitcoin News Today: Shiba Inu’s $0.001 Dream Hinges on Aggressive Supply Burns

Shiba Inu (SHIB) has gained renewed attention as analysts and market observers speculate on its potential for a significant price rally, particularly amid a period of relative weakness in both Bitcoin and Ethereum. SHIB is currently trading at approximately $0.00001231, having surged 15 million percent from its historical low of $0.00000000008165 in 2020. Analysts such as LuckSide Crypto and Crypto Sheriff are optimistic, projecting that SHIB could reach $0.001 if key technical levels hold and deflationary pressures intensify [1]. This ambitious target implies a price increase of roughly 8,023 percent from current levels.

Technical analysis of SHIB suggests it is at a critical juncture. The token has been consolidating below a descending resistance line, and recent activity points to a potential breakout. Traders are closely watching support levels between $0.00001150 and $0.00001200, with resistance forming around $0.00001250–$0.00001300. A successful break above these levels could see SHIB moving toward $0.00001600, which would mark a significant shift in its short-term trajectory [2]. Whale activity and increased accumulation at these support zones suggest growing interest in the token among larger investors.

The path to $0.001 remains challenging due to the token’s massive supply of approximately 589 trillion SHIB. If the $0.001 target were to materialize, the Shiba Inu ecosystem would achieve a valuation exceeding $589 billion, surpassing Ethereum’s current market cap of $519 billion [1]. Analysts argue that such a scenario is only plausible if the supply is significantly reduced through sustained token burn efforts. These burns could come from multiple sources, including Shibarium, which has already eliminated over 50 billion SHIB since its launch in August 2023. The L2 blockchain’s transaction fee-based burn model is a key mechanism driving this effort.

In addition to Shibarium, other initiatives could amplify SHIB’s deflationary pressure. Payment gateway providers like BitPay are integrating SHIB for transaction purposes, and implementing automatic 1 percent burns on every SHIB-based payment could further reduce supply [1]. NFT projects themed around Shiba Inu, such as Shiboshi and SHEboshi, are also being designed to include automatic burn features. These efforts aim to create a self-sustaining loop of supply reduction and price appreciation.

Exchange-based burns are another potential catalyst for SHIB’s price movement. Platforms such as Binance, Coinbase, and Kraken could initiate regular burns tied to trading volumes, with a portion of transaction fees converted to SHIB and sent to a dead wallet. Such mechanisms have been explored by other major cryptocurrencies, and their implementation could further align exchange incentives with long-term SHIB holders [1].

The broader cryptocurrency market context is also shaping SHIB’s potential. While Bitcoin has seen a correction after reaching $124,517 in late August, Ethereum has also shown signs of weakness. Bitcoin is currently trading near $111,000, having lost 11 percent in three weeks. Ethereum’s price performance has been similarly mixed, with recent news highlighting fluctuations in staked yields and corporate holdings [3]. In this environment, SHIB’s potential for high volatility and speculative returns is drawing attention, especially as institutional investment and ETF inflows continue to influence the sector.

However, skeptics caution that achieving the $0.001 target remains a long shot. The sheer scale of SHIB’s supply makes a significant price increase difficult without aggressive and sustained burn efforts. Additionally, the token’s performance is closely tied to broader market sentiment, which remains cautious ahead of the Federal Reserve’s upcoming meeting [3]. If Bitcoin continues to consolidate or Ethereum shows renewed weakness, SHIB could face downward pressure, particularly if it fails to hold key support levels.

Source:

[1] title1 (https://thecryptobasic.com/2025/09/06/here-is-how-shiba-inu-can-reach-0-001-by-reducing-supply-with-these-5-methods/)

[2] title2 (https://thetradable.com/crypto/shiba-inu-coin-price-prediction-is-a-breakout-ahead-ig--m)

[3] title3 (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-usd-stalls-at-111k-usd-agead-of-fed-desicion)